Latest News
-
Uganda to hold general elections on January 15,
The Ugandan electoral commission announced on Tuesday that the general elections will be held in the country on January 15. At the election, the octogenarian president Yoweri Museeveni will try to extend his reign to almost half a century. Museveni, Africa's fourth-longest-serving leader, has had his government change the constitution twice in order to remove term and age limits. This allows him to stay in office ever since 1986. As in the 2021 election, Museveni's main rival is expected to be 43-year-old pop star-turned-politician Bobi Wine, who has parlayed his singing stardom to amass a large support base among young voters. Wine, who is Robert Kyagulanyi in real life, claims that Museveni was able to win the last elections through ballot stuffing, voter intimidation, bribery, and other methods of rigging. Officials of the ruling party dismiss this accusation, claiming that Museveni was elected with genuine support. Six candidates from smaller parties will be running in the next presidential race. Voters will also elect parliament members. Former rebel Museveni is credited for stabilizing Uganda, promoting growth and fighting HIV/AIDS. Critics have condemned the suppression of political opposition, abuses of human rights and scandals involving corruption by his government. Officials deny allegations of human rights abuses, and claim that those in custody are subjected to due process. The government of Museveni hopes that the beginning of crude oil exports from fields operated France's TotalEnergies, and China's CNOOC next year will propel economic growth to double digits. Uganda is an important geopolitical actor in East Africa. It has troops in Somalia and South Sudan as well as in the Democratic Republic of Congo, Equatorial Guinea, and in the Democratic Republic of Congo on missions of anti-insurgency, peacekeeping or military co-operation. (Reporting by Elias Biryabarema; Editing by Alexander Winning, Alexandra Hudson)
-
Fluor gains after Starboard purchases stake, NuScale urges review
Sources familiar with the situation said that shares of construction company Fluor Corp rose by 6% on Tuesday in premarket trading after activist investor Starboard Value purchased a stake of nearly 5%, in order to unlock value in its 40% ownership in NuScale power. Jeff Smith, the founder of Starboard, is expected to present the investment thesis for the firm at the 13D Monitor Active Passive Investment Summit, which will be held in New York, later that day. He will also talk about plans for TripAdvisor - another recent target. NuScale Power shares fell 4.7% in value before the bell. Citigroup analysts said that Starboard's investment supports their view that Fluor shares still have room for growth. They cited the value of the NuScale stake and the potential improvement to the core operations of the company. Fluor could eventually sell its remaining 111,000,000 shares of NuScale, which represents over 60% of the company's market capitalization. Fluor's shares are down by 3% this year. NuScale's shares are up over 145% this year due to the growing demand for clean energy products that power AI-driven data centres and defense infrastructure. Starboard and Fluor both did not respond immediately when contacted. Fluor's core businesses, including infrastructure and energy projects have been under pressure. The company posted a 6% decline in revenue for the second quarter, falling short of analyst expectations. Starboard claims the segment is undervalued in comparison to Fluor NuScale's stake, and wants strategic options. Fluor, which is in a good position to benefit from the infrastructure policies of President Donald Trump that could boost investments in energy and construction, has launched an activist campaign.
-
Sources say that France's EDF has appointed advisers to examine options for Italian Edison.
Two sources with knowledge of the matter said that EDF, a French utility, has chosen Intesa Sanpaolo IMI as its financial advisors to examine strategic options for Edison in Italy. State-owned EDF, under the leadership of its new CEO Bernard Fontana has begun reviewing its assets in order to raise funds to meet government requirements for investment in new nuclear reactors. Sources have said that EDF was considering a public offering, bringing in a financial sponsor, or selling a stake to Edison. One person stated that EDF would retain a majority shareholding in Edison in any deal. Sources have estimated that Edison's value could range between 8 billion and 12 billion euros. EDF, Lazard Intesa and Edison have declined to comment. Il Sole 24 Ore, a daily Italian newspaper, reported that Intesa was in the lead to become EDF’s advisor. Edison CEO Nicola Monti stated in September that the Italian group is ready to list at the Milan bourse if its parent company decides to move forward with this plan. Edison has already established the corporate structure and procedures required for its stock to be traded publicly. EDF retained Edison's shares in Milan when it took Edison private and acquired its full control in 2012. This is a special type of share that offers a higher dividend rate than ordinary shares, but does not grant holders the right to vote at shareholder meetings. Edison reported revenues of 15,4 billion euros, and a core income of 1.7 billion euro last year.
-
Sources say that France's EDF has appointed advisers to examine options for Italian Edison.
Two sources with knowledge of the matter said that EDF, a French utility, has chosen Intesa Sanpaolo IMI as its financial advisors to examine strategic options for Edison in Italy. State-owned EDF, under the leadership of its new CEO Bernard Fontana has begun reviewing its assets in order to raise funds to meet government requirements for investment in new nuclear reactors. Sources have said that EDF was considering an IPO, bringing in a financial sponsor, or selling a stake to Edison. One person stated that EDF would retain a majority shareholding in Edison in any deal. Sources have estimated that Edison's value could range between 8 billion and 12 billion euros. EDF did not respond to a request for comment. Lazard Intesa and Edison refused to comment. Il Sole 24 Ore, a daily Italian newspaper, reported that Intesa was in the lead to become EDF’s advisor. Edison CEO Nicola Monti stated in September that the Italian group is ready to list at the Milan bourse if its parent company decides to move forward with this plan. Edison has already established the corporate structure and procedures required for its stock to be traded publicly. EDF retained Edison's shares in Milan when it took Edison private and acquired its full control in 2012. This is a special type of share that offers a higher dividend rate than ordinary shares, but does not grant holders the right to vote at shareholder meetings. Edison reported revenues of 15,4 billion euros, and a core income of 1.7 billion euro last year.
-
Copper prices fall on stronger dollar and muted Chinese demand
The copper price fell on Tuesday due to a stronger dollar, and signs that demand for metals from China, the world's largest consumer, was muted. However, a decrease in stocks at the London Metal Exchange helped limit the losses. The benchmark LME three-month futures fell 0.4%, to $10.651.50 per metric ton at 1001 GMT. Traders are waiting for more updates on the U.S. and China trade talks ahead of a high-stakes summit between the leaders of the two world's largest economies scheduled to take place in South Korea next week. The market for copper used in construction and power was impacted by data that showed China's economy slowed down to its lowest level in a year in the third quarter. "While Beijing will likely introduce additional targeted assistance in the coming month, the message is clear. China is entering a more mature, slower phase of expansion. Analysts at Sucden Financial say that the old investment-driven business model is losing steam. Yangshan Copper Premium The price of copper, which reflects the demand for China's imports of copper, has fallen 38% in the last month, to $36 a ton. This is its lowest level since July. On Oct. 9, copper reached a 16-month peak at $11,000 due to multiple mine supply disruptions. The daily LME data showed that the available copper stocks at the LME registered warehouses dropped to 127.350 tons. This was the lowest level since July after 2,000 new cancellations in South Korea. The 21-day moving average at $10,529 per ton is the closest support for copper on the technical front. Aluminium, among other LME metals rose by 0.2%, to $2,781.50 per ton. The Globe and Mail reported that a U.S. Canada trade agreement on aluminum, steel and energy may be ready to approve at the South Korea summit this month. Zinc rose 0.9% to $3.003.50. Lead increased 0.2% at $1.992.50. Tin remained unchanged at $35,300. Nickel fell 0.2%, to $15,190. (Reporting and editing by Emelia Matarise; Additional reporting by Dylan Duan)
-
Sources say that Anugrah Neo Energy Materials, Indonesia, plans to IPO for over $300 million.
Two people who have direct knowledge of this matter say that Anugrah Neo Energy Materials, a nickel mining and processing firm in Indonesia, plans to make an initial public offer on the Indonesia Stock Exchange. The company hopes to raise $300 million. Sources declined to identify themselves as this information is not public. According to sources, Anugrah Neo Energy Materials could be valued at more than 2 billion dollars. Proceeds will also be used for expansion. They added that DBS and RHB are among the banks involved in the IPO. Anugrah Neo Energy Materials didn't immediately respond to an inquiry for comment Tuesday. DBS declined comment. RHB stated that it is not in a position at this time to comment. Anugrah Neo Energy Materials, according to its site, operates two nickel-laterite mines in Central Sulawesi. TAS, located in Morowali, holds over 200 million tonnes in resources. MDK, located in Ampana, spans over 10,800 hectares (41,7 square miles). According to its website, the company is developing two industrial estates and a high-pressure acid-leach plant that produces mixed hydroxide, a precursor used in electric vehicle batteries. Indonesia, as the world's leading nickel producer, with a production of more than 50%, is driving investments in battery materials and EV supply chain. Indonesia is the largest economy in Southeast Asia.
-
Globe and Mail reports that a US-Canada trade agreement may be approved at the APEC Summit.
The Globe and Mail reported that a U.S.-Canada deal on energy, steel and aluminium could be ready to be signed by U.S. president Donald Trump and Canadian Prime Minister Mark Carney at the Asia-Pacific Economic Cooperation Summit later this month in South Korea. The Toronto daily could not confirm the story immediately. Carney, the White House and the U.S. Commerce Department did not respond to any requests for comments outside of regular business hours. Reports added that the U.S. is not willing to negotiate on softwood lumber or Canadian automobiles. Trump imposed tariffs against Canadian autos, steel and aluminium earlier this year. Canada responded in kind. The measures against aluminium and steel were lifted after negotiations. Sources told The Globe and Mail that Canada would likely have to accept steel quotas in exchange for lower U.S. Tariffs, but critical minerals were not on the table. Reports earlier this week indicated that Canada had offered to reduce tariffs on certain steel and aluminum products imported from both the U.S.A. and China in an effort to assist domestic businesses that were being battered on two fronts by a global trade war. Carney, who visited Washington in the first half of this month, said that he and Trump had a "meeting of minds" on the future of steel and aluminum.
-
IFC and Appian Launch $1 Billion Critical Minerals Fund in Africa and Latin America
The International Finance Corporation and Appian Capital Advisor, a private equity firm, have announced a $1 billion fund for critical mineral projects in Africa and Latin America. The fund will be anchored by a $100 million initial commitment from IFC (a member of World Bank Group), and focus on Nickel, Copper, Cobalt, and Rare Earths. These are all vital for energy transition and digital technology. IFC has launched its first joint fund with a mining investor. This is a reflection of the growing interest among development finance institutions in attracting private capital to mining projects. Appian CEO Michael Scherb said that the IFC is trying to invest more capital in this sector, which is a difficult one. Appian had already worked on rare earth and gold projects in Africa with the IFC. This is a more formalised relationship." Appian will co-invest alongside existing and future funds, managing assets of around $5 billion. The fund will invest its first money in Atlantic Nickel’s Santa Rita Mine in Brazil. This open-pit nickel, copper, and cobalt mine will also be developed underground by the parties. It is expected to produce 35,000 metric tons nickel per year for 34-years. The fund aims to support sustainable industrialisation and supply chain resilience in developing economies as governments and companies rush to secure critical minerals. Scherb stated that the fund was also considering building an downstream refinery at its Santa Rita Mine in Brazil. Scherb stated that Appian which produces graphite is already a downstream refiner of graphite, in the United States. The U.S. Department of Energy has recently given $125 million to this facility. He said: "We have expertise upstream and downstream and you could see us working with governments more based on this basis."
OPEC+ faces a loss of control if it delays its output further: Bousso
OPEC, along with its allies, is faced with a difficult decision: Should they begin lowering the oil production cap even though crude supply and demand are unlikely to improve anytime soon? The OPEC and its allies may choose to delay this crucial moment in order to maintain prices, but they risk losing market control.
In April, the Organization of the Petroleum Exporting Countries (OPEC) and other major producers, including Russia, will begin to slowly unwind years of production restrictions.
After a series cuts since 2022, the group has held back 5.85 million barrels of production per day, or 5.7% of global consumption.
Due to the persistently low oil demand and growth of global crude production, the rollback of 2.2 millions bpd, announced in November for 2024's first quarter, has been delayed five different times.
Unfortunately, the market is not likely to improve significantly by April.
It may even get worse, as the increasingly fractious relations between the United States of America and other major economies will weigh on demand for oil.
Donald Trump, the U.S. president, has urged Saudi Arabia, OPEC de-facto leader to lower oil prices. Trump's discussion with his Russian counterpart Vladimir Putin, and the bilateral U.S. - Russia talks that followed in Saudi Arabia, have raised speculations about a possible ceasefire in Ukraine as well as a possible easing of U.S. restrictions on Moscow's huge oil production.
DISCIPLINE
OPEC+'s members have been able to maintain relative stability on the oil market in recent years largely due to their discipline. Benchmark Brent crude has remained in the range of $70-$100 a barrel, except for a few volatile months that followed Moscow's invasion.
OPEC has seen its market share and ability to control the market steadily decline as non-member producers increased their output. Drillers in the Permian deposits of Texas and New Mexico have seen their output soar in recent years that the United States is now the top producer in the world.
This month, the U.S. Energy Information Administration raised its forecast for U.S. crude oil production to a record 13.6 million barrels per day in 2025. Although the rate of growth has slowed, it is expected that production will remain constant for many years.
The EIA predicts that global oil production will grow by 1.6 millions bpd in 2025, with the United States, Canada and Brazil leading this growth.
Meanwhile, tensions are rising within the alliance.
Chevron's $48 billion expansion at Kazakhstan's Tengiz oil field is expected to achieve production of 260,000 barrels per day by the end February, four months earlier than planned. This will bring total production up to 1,000,000 barrels per day. To meet its production goal, the central Asian country would have to significantly reduce its output, resulting in a loss of revenue.
Nigeria has increased production in the last few months. Kurdistan, Iraq's semiautonomous region, could soon resume its 300,000 barrels per day oil exports after a two-year dispute.
After years of investment, the United Arab Emirates (a close ally of Saudi Arabia) is also increasing its capacity. Gulf State has reached a capacity of almost 5 million barrels per day, as opposed to the current official production levels of 3.2 millions bpd. This year, the quota will increase by 300,000.
Tough Choices
According to the International Energy Agency, the growth of the oil supply in 2025 will outpace the global demand for oil, which is forecast to increase by 1.1 millions bpd, after gaining 870,000 bpd last year.
OPEC's global oil inventory trends are slightly more positive, but still not very much. If production does indeed exceed demand, then stocks should begin to rise this year. More OPEC+ supply would only accelerate the build-up.
OPEC+ is thus faced with a difficult choice. The upside of further delays in the unwinding of cuts is limited, since significant spare production capacity already helps maintain stable oil prices by providing a market buffer. Holding back production increases economic pressures for producers who are growing their capacity within a group.
Trump could be irritated by a delay.
On the other hand however, an increase in production on a market that is well supplied could result in a drop of oil prices.
OPEC+ could decide to delay again, but that decision will have consequences. The group's credibility and market share may suffer even further.
** The opinions here are the columnist's, who is an author for **
(source: Reuters)